Is Bitcoin’s 5% Drop a Sign of More Volatility Ahead?
Bitcoin tumbles over 5%, raising investor concerns.
By Tylt Editorial Team
Bitcoin drops below $80K for the first time since November 11.
Investor sentiment weakens amid U.S. tariff concerns and crypto policy uncertainty.
A $1.5 billion hack at Bybit adds to the negative outlook.
Bitcoin fell sharply on Friday, sliding over 5% to $79,666, marking its lowest level in more than three months. The cryptocurrency’s drop below $80,000 signals waning investor confidence as macroeconomic worries and regulatory uncertainties weigh on the market.
The decline follows increasing unease over U.S. President Donald Trump’s proposed tariffs and a lack of clear crypto policy direction. While the administration initially sparked optimism by appointing crypto-friendly officials, no substantial regulatory changes have materialized to support the market.
Joshua Chu, Co-Chair of the Hong Kong Web3 Association, noted that Bitcoin’s decline suggests the bullish sentiment driven by political developments and high-profile endorsements has run its course. Since hitting a peak of $105,000 in mid-December, Bitcoin has shed about 25% of its market value.
Kyle Rodda, senior financial market analyst at Capital.com, highlighted that Bitcoin’s sell-off aligns with a broader slowdown in momentum-driven assets. The recent dip in major U.S. tech stocks, particularly the "Magnificent Seven" companies, has also impacted Bitcoin, which often trades in correlation with high-growth technology sectors.
Meanwhile, Ether, the second-largest cryptocurrency by market capitalization, fell nearly 6% to $2,149.38, its lowest since January. The crypto market took another hit after Dubai-based exchange Bybit, the world’s second-largest platform after Binance, reported a $1.5 billion hack on February 21. Blockchain research firm Elliptic described the breach as one of the largest known crypto thefts in history.
Investor caution is also rising as Trump prepares to impose a 25% tariff on imports from Canada and Mexico starting in early March, with additional trade restrictions expected on China. These measures have stoked fears of rising inflation and slower global economic growth.
Reuben Conceicao, Chief Strategy Officer at digital wallet firm Metasig, pointed out that a combination of factors—including Federal Reserve policies, geopolitical uncertainty, and the Bybit hack—has dampened market sentiment. With no clear bullish catalysts, investors are growing more hesitant about pushing Bitcoin higher in the near term.
